Edmonton’s high-end properties are beginning to decide up gross sales

Links to the breadcrumb trail

Low interest rates and demand for more living space are driving activity in the market with over a million homes

Author of the article:

Joel Schlesinger for the Edmonton Journal This Glenora house was built in 1914 and was once the home of the Lieutenant General.  It is listed for $ 1.2 million. This Glenora house was built in 1914 and was once the home of the Lieutenant General. It is listed for $ 1.2 million. Photo by Ed Kaiser /Postal media

Reviews and recommendations are impartial and products are independently selected. Postmedia can earn affiliate commission from purchases made through links on this page.

Article content

It’s a spring ritual.

advertising

This ad hasn’t loaded yet, but your article continues below.

Article content

Every year Sotheby’s International Realty Canada publishes a luxury real estate report for major Canadian markets, and Edmonton is not among the cities included in the study each year. This year is no exception.

“The reason Edmonton is not included is because they only focus on the most important markets,” says local realtor Ron Dickson, also senior vice president of sales at Sotheby’s International Realty Canada.

“Still, luxury is very relevant in Edmonton.”

Sotheby’s recently released its Spring Outlook 2021 property report, noting that sales for the luxury markets in Toronto, Vancouver, Montreal and Calgary are increasing in the first two months of 2021 over the same period in 2020.

In Toronto, for example, there were 90 sales priced at $ 4 million and above, up 57 percent over the previous year. By comparison, in Calgary, where the luxury segment starts at $ 1 million or more, sales grew 119 percent and were dominated by single-family homes, which accounted for 117 of the 125 luxury deals.

advertising

This ad hasn’t loaded yet, but your article continues below.

Article content

Sotheby’s President and CEO for Canada Don Kottick notes that the high-end Calgary market is driven by executives and new money from entrepreneurs.

Calgary is having “a little tech boom,” he says, noting that these tech preneurs are fueling growing sales in a market that was once oil and gas powered.

In contrast, Edmonton’s luxury market is generally less active than Calgary’s, fueled by “old money” in old neighborhoods like Glenora and Laurier Heights and demand from high-paid professionals, Dickson says.

“We’re not a big market like Vancouver,” he says, adding that many homes worth $ 1 million or more have been built many times over in the past decade. “So these magnificent houses have yet to come to the party.”

Kottick goes on to explain that these homeowners are now looking into a listing. As evidence, he says the volume of calls from buyers and sellers in the over $ 1 million market was higher than ever in the first three months of the year.

advertising

This ad hasn’t loaded yet, but your article continues below.

Article content

“We’ve seen more activity than usual in the luxury market with qualified buyers looking at luxury real estate,” said Dickson, who represents the city’s two most expensive listed properties at $ 6.5 million and $ 7 million.

Sales are also strong. To date (March 28), 40 homes in the Edmonton area have sold for more than $ 1 million, building on 2020 momentum when 162 homes were sold in the luxury market year-round, figures from MLS show ( Multiple Listing Service).

By comparison, 149 homes over $ 1 million were sold throughout 2014, the height of the last property boom before falling oil prices triggered a multi-year property slump.

“Unlike Calgary, the buyers are mostly doctors, surgeons, and dentists, while the sellers here are mostly business owners – a really cool paradigm,” says Dickson.

As in most other parts of the market, interest in luxury is driven by low interest rates and the demand for land. He also notes that many buyers are selling property in Phoenix and other American destinations, or foregoing vacation home purchases in order to buy a bigger, better home in Edmonton.

“It won’t get better until the spring,” added Dickson. “This is the perfect storm right now.”

Share this article on your social network

advertising

This ad hasn’t loaded yet, but your article continues below.

By clicking the registration button, you agree to receive the above newsletter from Postmedia Network Inc. You can unsubscribe at any time by clicking the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Remarks

Postmedia advocates a lively but civil discussion forum and encourages all readers to share their thoughts on our articles. It can take up to an hour for comments to be moderated before they appear on the site. We ask that you keep your comments relevant and respectful. We turned on email notifications – you will now receive an email when you’ve received a reply to your comment, there’s an update on a comment thread you’re following, or when a user you follow follows comments . Check out our Community Guidelines for more information and details on how to customize your email settings.

Comments are closed.